BMW cuts 26,000 workers

BMW cuts 26,000 workers

We all know BMW build great cars, but even Germany’s finest is struggling to tread water in the current tough automotive climate. Lagging demand has forced BMW to cut 26,000 workers for the months of February and March and BMW’s factories in Dingolfing and Regensburg will be effected by the eliminations, which will cut 38,000 units. BMW is also reducing hours at Berlin and Landshut to better align output with demand. The reduced production hours and labor cuts won’t result in any permanent layoffs, though a prolonged sales slump could lead management to take more drastic action. The shrinking vehicle market is also hurting BMW’s stock price, which is down 49% over the past 12 months.

The world’s largest luxury automaker may also be looking for loan guarantees from the German government. Reports are that BMW is looking to follow Volkswagen in securing its debt to help weather the auto sales tsunami. Volkswagen, which is reducing hours for 86,000 of its workers, requested financial support in December. With BMW’s strong track record the German government should be ready to help.

We all know BMW build great cars, but even Germany’s finest is struggling to tread water in the current tough automotive climate. Lagging demand has forced BMW to cut 26,000 workers for the months of February and March and BMW’s factories in Dingolfing and Regensburg will be effected by the eliminations, which will cut 38,000 units. BMW is also reducing hours at Berlin and Landshut to better align output with demand. The reduced production hours and labor cuts won’t result in any permanent layoffs, though a prolonged sales slump could lead management to take more drastic action. The shrinking vehicle market is also hurting BMW’s stock price, which is down 49% over the past 12 months.

The world’s largest luxury automaker may also be looking for loan guarantees from the German government. Reports are that BMW is looking to follow Volkswagen in securing its debt to help weather the auto sales tsunami. Volkswagen, which is reducing hours for 86,000 of its workers, requested financial support in December. With BMW’s strong track record the German government should be ready to help.

« | »

Let us know what you think

Loading Facebook Comments ...

Road Tests

Silver Sponsors

Car and SUV Team

Richard-Edwards-2016Richard Edwards

Managing editor

linkedinphotoDarren Cottingham

Motoring writer

robertbarry-headRobert Barry

Chief reporter

Ian-Ferguson-6Ian Ferguson

Advertising Consultant

debDeborah Baxter

Operations Manager

RSS Latest News from Autotalk

RSS Latest News from Dieseltalk

Read previous post:
Fiat saves Chrysler with a strategic partnership

Chrysler announced yesterday that the troubled automaker has entered into a global strategic alliance with Fiat SpA, giving both companies...

Close